Is Welshpool on the brink of bankruptcy?
In the wake of, what we were told was, a tempestuous monthly meeting of the full council on Wednesday night, MyWelshpool was contacted by several fuming councillors venting their anger, with two saying they are going to quit.
The meeting, we are told, saw tempers flare with raised voices, following the confirmation that millions of pounds are urgently needed to avoid a financial collapse.
We have spoken with the Mayor, Cllr Phil Owen, who has provided us with an overview of the situation from his perspective (see separate story with his statement carried in full), but we have been chewing over the information that has reached us in the aftermath of the news that, in short, massive amounts of money are needed, and soon, to save the Town Hall and other properties and facilities it owns and has to maintain.
Powys County Councillor, Graham Breeze, who attended the meeting, said afterwards that Welshpool Town Council “at last went public about its incredible financial crisis”.
He went on to state that “of course the Town Council does not have that sort of money and last night it became obvious that reserves have already been raided and the cupboard is bare”.
He also blasted the Town Council for holding so many meetings behind closed doors, a situation that MyWelshpool has been highlighting as ‘a snub to democracy’ over the past year.
Cllr Breeze described it as “very serious times for Welshpool and residents deserve to know the truth”.
The situation means we can virtually kiss goodbye to a new skatepark, and any other projects that don’t make money. And the council is now planning to sell off assets including part of Dolyfelin Playing Fields for housing development. The Ann Holloway Centre could also go.
The situation is extremely grim and came to light when the Town Council commissioned a professional survey to be carried out on the Town Hall, and other assets it owns.
The response was confirmed as follows: “The problems you (Town Council) are experiencing especially at the Town Hall is due to the lack of investment over the last five decades or so where essential repair and maintenance is clearly required from a health and safety perspective and to prevent the protected asset failing into further disrepair which will attract inevitable higher repair costs.”
The RCIS-recommended surveyor’s report has been discussed in closed sessions since it was received, and this week we have all found out why… and here are the astronomical figures.
Town Hall: Estimated costs of £5,012,500 with £457,500 in year 1
Berriew Street toilets: Estimated costs of £29,900 in year 1
Day Centre: Estimated costs of £193,750 in years 1 and 2
Sports Clubs: Estimated costs of £263,500 with £207,500 in years 1 and 2
Tourist Information Centre: Estimated costs of £75,550 over 10 years
Motte and Bailey: Estimated costs of £295,000 with £283,000 in years 1 and 2
This is what the Town Council has said:
“Following the completion of the reports, Councillors discussed the financial implications in the Finance Committee meeting held on February 26. In this meeting, Councillors discussed a range of actions including looking at the future use of its assets, working with partnership agencies, and strategic planning. It also agreed to seek advice from its auditors.
It was also noted that the budget for 2025-2026 has been set, it includes a modest reserve of £24K, an estimated income of £913,400 and expenditure of £889,164. The precept element of the income will be £781,600. The first installation will be received by the Town Council at the end of April.
There will be no additional rise in Council Tax during the financial year 2025-2026. This figure is set.
The Town Council will be looking at its Asset Management Strategy whilst considering its capital spending requirements.”
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